Exhibit 10.40


 


NOTE PURCHASE AGREEMENT


BY AND AMONG


ELECTROMEDICAL TECHNOLOGIES, INC.


AND


 


JR-HD ENTERPRISES III, LLC


 


DATED AS OF AUGUST 4, 2020


 


NOTE PURCHASE AGREEMENT


 


This Note Purchase Agreement (together with all exhibits
hereto, this “Agreement”) is entered into as of August 4, 2020 (the “Closing Date”), by and among
Electromedical Technologies, Inc., a Delaware corporation (the “Company”) and JR-HD Enterprises III, LLC, a
Delaware limited liability company (“Buyer”). The Company and the Buyer may be collectively referred to herein as
the “Parties” and individually as a “Party”.


 


WHEREAS, the Company desires to issue and sell to the
Buyer a convertible promissory note in the aggregate principal amount of $215,000 and in the form as attached hereto as
Exhibit A (the “Note”) on the terms set forth herein and the Buyer wishes to purchase the Note on the terms and
conditions provided for herein;


 


NOW, THEREFORE, in consideration of the mutual covenants
and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:


 


Article I. DEFINITIONS


 


Section 1.01 Definitions. In addition to the terms defined
elsewhere in this Agreement, the following terms, as used herein, have the following meanings:


 


(a) “Affiliate” means, with respect to a
specified Person, any other Person that directly or indirectly Controls, is Controlled by or is under common Control with,
the specified Person.


 


(b) “Business Day” means any day except
Saturday, Sunday and any legal holiday or a day on which banking institutions in Delaware generally are authorized or
required by Law or other governmental actions to close.


 


(c) “Contract” means any contract, commitment,
understanding or agreement (whether oral or written).


 


(d) “Common Stock” mean shares of common stock,
par value $0.00001 per share, of the Company.


 


(e) “Control” means (a) the possession, directly
or indirectly, of the power to vote 10% or more of the securities or other equity interests of a Person having ordinary voting
power, (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of a Person, by contractor otherwise, or (c) being a director, officer, executor, trustee or fiduciary (or their equivalents)
of a Person or a Person that controls such Person.


 


(f) “Governmental Entity” means any federal,
state, municipal, local or foreign government and any court, tribunal, arbitral body, administrative agency, department,
subdivision, entity, commission or other governmental, government appointed, quasi-governmental or regulatory authority,
reporting entity or agency, domestic, foreign or supranational.


 






    


     


    

 


(g) “Law” means any applicable foreign, federal,
state or local law (including common law), Statute, treaty, rule, directive, regulation, ordinances and similar provisions having
the force or effect of law or an Order of any Governmental Entity.


 


(h) “Liabilities” means liabilities, obligations
or responsibilities of any nature whatsoever, whether direct or indirect, matured or un-matured, fixed or unfixed, known or unknown,
asserted or un asserted, choate or inchoate, liquidated or unliquidated, secured or unsecured, absolute, contingent or otherwise,
including any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost or expense.


 


(i) “Lien” means, with respect to any property
or asset, any lien, security interest, mortgage, pledge, charge, claim, lease, agreement, right of first refusal, option,
limitation on transfer or use or assignment or licensing, restrictive casement, charge or any other restriction of any kind,
and any conditional sale or voting agreement or proxy, and including any restriction on the ownership, use, voting, transfer,
possession, receipt of income or other exercise of any attributes of ownership, in respect of such property or asset, and any
agreement to give any of the foregoing.


 


(j) “Losses” means any losses, damages, deficiencies,
Liabilities, assessments, fines, penalties, judgments, actions, claims, costs, disbursements, fees, expenses or settlements of
any kind or nature, including legal, accounting and other professional fees and expenses.


 


(k) “Order” means any judgment, writ, decree,
determination, award, compliance agreement, settlement agreement, injunction, ruling, charge, judicial or administrative
order, determination or other restriction of any Governmental Entity or arbitrator.


 


(1) “Person” means a natural person, a corporation,
a limited liability company, a partnership, an association, a trust or any other entity or organization, including a government
or political subdivision or any agency or instrumentality thereof.


 


(m) “Securities Act” means the United States Securities
Act of 1933, as amended, and the rules and regulation promulgated thereunder.


 


(n) “Transactions” means the purchase and sale
of the Note and the other transactions contemplated under the Transaction Documents.


 


(0) “Transaction Documents” means this
Agreement, the Note and any other agreement, document, certificate or writing delivered or to be delivered in connection with
this Agreement and any other document related to the Transactions related to the forgoing, including, without limitations,
those delivered at the Closing.


 


Section 1.02 Interpretive Provisions. Unless the express
context otherwise requires, the words “hereof,” “herein,” and “hereunder” and words of
similar import, when used in this Agreement,shall refer to this Agreement as a whole and not to any particular provision of
this Agreement;terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa; the
terms “Dollars” and “$” mean United States Dollars, unless otherwise specified herein; references
herein to a specific Section, Subsection, Recital or Exhibit shall refer, respectively, to Sections, Subsections, Recitals or
Exhibits of this Agreement; wherever the word “include,” “includes,” or “including” is
used in this Agreement, it shall be deemed to be followed by the words “without limitation”; references herein to
any gender shall include each other gender; references herein to any Person shall include such Person’s heirs,
executors, personal representatives, administrators, successors and assigns; provided, however, that nothing contained in
this Section 1.02 is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; references
herein to a Person in a particular capacity or Capacities shall exclude such Person in any other capacity; references herein
to any contract or agreement (including this Agreement) mean such contract or agreement as amended, supplemented or modified
from time to time in accordance with the terms thereof; with respect to the determination of any period of time, the word
“from” means “from and including” and the words “to” and “until” each means
“to but excluding”; references herein to any Law or any license mean such Law or license as amended, modified,
codified, reenacted, supplemented or superseded in whole or in part, and in effect from time to time; and references herein
to any Law shall be deemed also to refer to all rules and regulations promulgated thereunder.


 






    


     


    

 


Article II. PURCHASE AND SALE


 


Section 2.01 Purchase and Sale. Subject to the terms and
conditions of this Agreement, at the Closing (as defined below), the Company shall issue and sell to Buyer a Note in the
aggregate principal amount of $215,000, for a purchase price of $200,000 (the “Purchase Price”), reflecting a
$15,000 original issue discount.


 


Section 2.02 Deliverables at Closing. At the Closing (as defined
below), Buyer shall deliver the Purchase Price to the Company via a check payable to the Company or wire transfer pursuant to
the wire transfer instructions as provided by the Company to Buyer, and the Company shall issue to Buyer the Note.


 


Section 2.03 Closing. On the terms set forth herein, the
closing of the Transactions (the “Closing”) shall take place by conference call and electronic communication
(i.e., emails/pdf) or facsimile, with exchange of original signatures to follow by mail, on the date hereof and effective as
of 11:59 p.m. Eastern time, on such date,


 


Section 2.04 Use of Proceeds. The Company covenants and agrees
that it shall utilize the Purchase Price to pay for auditing fees and other necessary costs to get the Company’s filings
with the Securities and Exchange Commission up to date and compliant, and to pay for legal, organizational and marketing costs
for a planned offering pursuant to Regulation A under the Securities Act.


 


Article Il. REPRESENTATIONS AND WARRANTIES OF THE COMPANY


 


The Company represents and warrants to Buyer that the following
representations and warranties contained in this Article III are true and correct as of the Closing Date:


 


Section 3.01 Authorization of Transactions. The Company is
a corporation duly authorized and in good standing in the State of Delaware and has the requisite power and capacity to
execute and deliver the Transaction Documents to which it is a party and to perform its obligations hereunder and thereunder.
The execution, delivery and performance by the Company of the applicable Transaction Documents and the consummation of the
Transactions have been duly and validly authorized by all requisite action on the part of the Company. The Transaction
Documents to which the Company is a party have been duly and validly executed and delivered by The Company. Each Transaction
Document to which the Company is a party constitutes the valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms and conditions, except to the extent enforcement thereof may be limited by
applicable bankruptcy, insolvency or other Laws affecting the enforcement of creditors’ rights or by the principles
governing the availability of equitable remedies.


 


Section 3.02 Governmental Approvals: Non-contravention.


 


(a) No consent, Order, action or non-action of, or filing,
notification, declaration or registration with, any Governmental Entity or Person is necessary for the execution, delivery or
performance by the Company of this Agreement or any other Transaction Document to which the Company is a party.


 






    


     


    

 


(b) The execution, delivery and performance by the Company
of the Transaction Documents to which the Company is a party, and the consummation by the Company of the Transactions, do not
(i) violate or conflict with any Law or Order to which the Company or the Note may be subject, (ii) constitute a violation or
breach of, be in conflict with, constitute or create (with or without due notice or lapse of time or both) a default (or give
rise to any right of termination, modification, cancellation or acceleration) of any obligation under any Contract to which
the Company is a party or to which the Company or the Note are subject or by which the Company’s properties, assets or
rights are bound or (iii) result in the creation or imposition of any Lien upon any of the rights, properties or assets of
the Company or on the Note.


 


Section 3.03 Brokers. The Company has not engaged, or
caused to be incurred any Liability or obligation to, any investment banker, finder, broker or sales agent or any other
Person in connection with the origin, negotiation, execution, delivery or performance of the Transaction Documents to which
it is a party, or the Transactions.


 


ArticleIV. REPRESENTATIONS AND WARRANTIES OF BUYER


 


Buyer represents and warrants to the Company that the following
statements contained in this Article IV are true and correct as of the Closing Date:


 


Section 4.01 Authorization of Transactions. Buyer is a limited
liability company, duly qualified under the laws of the State of Delaware, and has the requisite power and capacity to execute
and deliver the Transaction Documents to which it is a party and to perform its obligations hereunder and thereunder. The execution,
delivery and performance by Buyer of the applicable Transaction Documents and the consummation of the Transactions have been duly
and validly authorized by all requisite action on the part of Buyer. The Transaction Documents to which Buyer is a party have
been duly and validly executed and delivered by Buyer. Each Transaction Document to which Buyer is a party constitutes the valid
and legally binding obligation of Buyer, enforceable against Buyer in accordance with its terms and conditions, except to the
extent enforcement thereof may be limited by applicable bankruptcy, insolvency or other Laws affecting the enforcement of creditors’
rights or by the principles governing the availability of equitable remedies.


 


Section 4.02 Governmental Approvals; Non-contravention.


 


(a) No consent, Order, action or non-action of, or filing,
notification, declaration or registration with, any Governmental Entity is necessary for the execution, delivery or performance
by Buyer of this Agreement or any other Transaction Document to which Buyer is a party.


 


(b) The execution, delivery and performance by Buyer of
the Transaction Documents to which Buyer is a party, and the consummation by Buyer of the Transactions, do not violate any
Laws or Orders to which Buyer is subject or violate, breach or conflict with any provision of Buyer’s organizational
documents.


 


Section 4.03 Investment Representations.


 


(a) Buyer understands and agrees that the consummation of
this Agreement including the delivery of the Note as contemplated hereby and the shares of Common Stock that may be issued to
Buyer pursuant to the Note (the “Shares” and, together with the Note, collectively, the “Securities”)
constitute the offer and sale of securities under the Securities Act and applicable state statutes and that the Securities
are being acquired for Buyer’s own account and not with a present view towards the public sale or distribution thereof,
except pursuant to sales registered or exempted from registration under the Securities Act.


 






    


     


    

 


(b) Buyer is an “accredited investor” as that term
is defined in Rule 501(a) of Regulation D under the Securities Act.


 


(c) Buyer understands that the Securities are being
offered and sold to Buyer in reliance upon specific exemptions from the registration requirements of United States federal
and state securities Laws and that the Company is relying upon the truth and accuracy of, and Buyer’s compliance with,
the representations, warranties, agreements, acknowledgments and understandings of Buyer set forth herein in order to
determine the availability of such exemptions and the eligibility of Buyer to acquire the Securities.


 


(d) At no time was Buyer presented with or solicited by
any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or
solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated
offer. Buyer is not purchasing the Note acquired by Buyer hereunder as a result of any “general solicitation” or
“general advertising,” as such


terms are defined in Regulation D under the Securities Act,
which includes, but is not limited to, any advertisement, article, notice or other communication regarding the Note acquired by
Buyer hereunder published in any newspaper, magazine or similar media or on the internet or broadcast over television, radio or
the internet or presented at any seminar or any other general solicitation or general advertisement.


 


(e) Buyer is acquiring the Securities for its own account
as principal, not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution
or fractionalization thereof in whole or in part and no other person has a direct or indirect beneficial interest in the
Securities. Further, Buyer does not have any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with respect to the Securities.


 


(f) Buyer, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits
and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.


 


(g) Buyer understands that no United States federal or
state agency or any other governmental or state agency has passed on or made recommendations or endorsement of the Securities
or the suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the
transactions set forth herein.


 


Section 4.04 Brokers. Buyer has not engaged any investment
banker, finder, broker or sales agent or any other Person in connection with the origin, negotiation, execution, delivery or
performance of any Transaction Document to which it is a party, or the Transactions.


 


Article V. INDEMNIFICATION


 


Section 5.01 General Indemnification. Each Party (the “Indemnifying
Party”) agrees to indemnify, defend and hold harmless the other Party and such other Party’s Affiliates and each of
their respective directors, officers, managers, partners, employees, agents, equity holders, Successors and assigns (each, an
“Indemnified Party”), from and against any and all Losses incurred or suffered by any Indemnified Party arising out
of, based upon or resulting from any breach of any representation or warranty of the Indemnifying Party herein or breach by the
Indemnifying Party of, or any failure the Indemnifying Party to perform, any of the covenants, agreements or obligations contained
in or made pursuant to this Agreement or the Transaction Documents by the Indemnifying Party.


 






    


     


    

 


Section 5.02 Procedures for Indemnification. In the event
that an Indemnified Party shall incur or suffer any Losses in respect of which indemnification may be sought under this
Article V against the Indemnifying Party, the Indemnified Party shall assert a claim for indemnification by providing a
written notice (the “Notice of Loss”) to the Indemnifying Party stating the nature and basis of such
indemnification. The Notice of Loss shall be provided to the Indemnifying Party as soon as practicable after the Indemnified
Party becomes aware that it has incurred or suffered a Loss.


 


Section 5.03 Payment. Upon a determination of liability
under this Article V the Indemnifying Party shall pay or cause to be paid to the Indemnified Party the amount so determined
within five (5) Business Days after the date of such determination. If there should be a dispute as to the amount or manner
of determination of any indemnity obligation owed under this Agreement, the Indemnifying Party shall nevertheless pay when
due such portion, if any, of the obligation that is not subject to dispute. Upon the payment in full of any amounts due under
this Article V with respect to any claim, the Indemnifying Party shall be subrogated to the rights of the Indemnified Party
against any Person with respect to the subject matter of such claim.


 


Section 5.04 Effect_of Knowledge on Indemnification. The
right to indemnification, reimbursement or other remedy based upon any representations, warranties, covenants and obligations
set forth in this Agreement shall not be affected by any investigation conducted with respect to, or any knowledge acquired
(or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement, with
respect to the accuracy or inaccuracy of or compliance with any such representation, warranty, covenant or obligation. The
waiver of any condition based upon the accuracy of any representation or warranty, or on the performance of or compliance
with any covenant or obligation, shall not affect the right to indemnification,reimbursement or other remedy based upon such
representations, warranties, covenants or obligations.


 


Article VI. MISCELLANEOUS


 


Section 6.01 Notices.


 


(a) Any notice or other communications required or
permitted hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by email,
overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:


 


if to the Company, to:


 


Electromedical Technologies, Inc.


Attn: Matthew Wolfson


 


16561 N. 92nd Street, Suite 101


Scottsdale, AZ 85260


 


Email: ceo@electromedtech.com


 


If to the Buyer, to:


 


JR-HD Enterprises III, LLC


 


Attn: Jeff Ramson


 


150 East 58th Street, 20th Floor


New York, NY 10155


 


Email: Jramson@pcgadvisory.com


 






    


     


    

 


With a copy, which shall not constitute notice, to:


 


Anthony L.G., PLLC


 


Attn: John Cacomanolis


 


625 N. Flagler Drive, Suite 600


 


West Palm Beach, FL 33401


 


Email: jcacomanolis@anthonypllc.com


 


(b) Any Party may change its address for notices hereunder
upon notice to each other Party in the manner for giving notices hereunder.


 


(c) Any notice hereunder shall be deemed to have been
given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon
dispatch, if transmitted by email with return receipt requested and received and (iv) three (3) days after mailing, if sent
by registered or certified mail.


 


Section 6.02 Attorneys’ Fees. In the event that any
Party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach
hereof, the prevailing Party shall be reimbursed by the losing Party for all costs, including reasonable attorney’s
fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.


 


Section 6.03 Amendments; No Waivers: No Third-Party Beneficiaries.


 


(a) This Agreement may be amended, modified, superseded,
terminated or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived,
only by a written instrument executed by both of the Parties.


 


(b) Every right and remedy provided herein shall be cumulative
with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith,
and no waiver by any Party of the performance of any obligation by another Party shall be construed as a waiver of the same or
any other default then, theretofore, or thereafter occurring or existing.


 


(c) Neither any failure or delay in exercising any right
or remedy hereunder or in requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver
of or prevent any Party from enforcing any right or remedy or from requiring satisfaction of any condition. No notice to or
demand on a Party waives or otherwise affects any obligation of that Party or impairs any right of the Party giving such
notice or making such demand, including any right to take any action without notice or demand not otherwise required by this
Agreement. No exercise of any right or remedy with respect to a breach of this Agreement shall preclude exercise of any other
right or remedy, as appropriate to make the aggrieved Party whole with respect to such breach, or subsequent exercise of any
right or remedy with respect to any other breach.


 


(d) Notwithstanding anything else contained herein, no Party
shall seek, nor shall any Party be liable for, consequential, punitive or exemplary damages, under any tort, contract, equity,
or other legal theory, with respect to any breach (or alleged breach) of this Agreement or any provision hereof or any matter
otherwise relating hereto or arising in connection herewith.


 






    


     


    

 


Section 6.04 Expenses. Unless otherwise contemplated or
stipulated by a Transaction Document, all costs and expenses incurred in connection with this Agreement shall be paid by the
Party incurring such cost or expense.


 


Section 6.05 Further Assurances. Following the Closing,
each Party shall execute and deliver such documents and other papers and take such further action as may be reasonably
required to carry out the provisions of the Transaction Documents.


 


Section 6.06 Successors and Assigns; Benefit. The
provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors
and assigns. No Party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement
without the written consent of the other Party. Other than as specifically set forth herein, including in Article V, nothing
in this Agreement shall confer on any Person other than the Parties, and their respective successors and assigns, any rights,
remedies, obligations, or Liabilities under or by reason of this Agreement.


 


Section 6.07 Governing Law: Etc.


 


This Agreement, and all matters based upon, arising out of
or relating in any way to the Transactions or the Transaction Documents, including all disputes, claims or causes of action arising
out of or relating to the Transactions or the Transaction Documents as well as the interpretation, construction, performance and
enforcement of the Transaction Documents, shall be governed by the laws of the United States and the State of Delaware, without
regard to any jurisdiction’s conflict-of-laws principles.


 


SUBJECT TO Section 6.09, ANY LEGAL SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE CONTEMPLATED TRANSACTIONS SHALL BE INSTITUTED
SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF NEW YORK, IN EACH CASE LOCATED IN NEW
YORK CITY, NEW YORK, AND EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR
PROCEEDING. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY
PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.


 


EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 6.07(c).


 






    


     


    

 


Each of the Parties acknowledge that each has been
represented in connection with the signing of this waiver by independent legal counsel selected by the respective Party and
that such Party has discussed the legal consequences and import of this waiver with legal counsel. Each of the Parties
further acknowledge that each has read and understands the meaning of this waiver and grants this waiver knowingly,
voluntarily, without duress and only after consideration of the consequences of this waiver with legal counsel.


 


Section 6.08 Survival. The representations and warranties
in this Agreement shall survive the Closing for a period of 12 months from the Closing Date, and no claim for indemnification
may be made after such time. All covenants and agreements in this Agreement will survive until fully performed; provided,
however, that, nothing herein shall prevent a Party from making any claim hereunder, or relieve any other Party from any
liability hereunder, after such time for any breach thereof.


 


Section 6.09 Resolution of Disputes. Except as otherwise provided
herein, all controversies, disputes or actions between the Parties arising out of the Transactions or this Agreement, including
their respective Affiliates, owners, officers, directors, agents and employees, arising from or relating to this Agreement shall
on demand of either party be submitted for arbitration to in accordance with the rules and regulations of the American Arbitration
Association. The arbitration shall be conducted by one arbitrator jointly selected by each Party who is a party to the Dispute,
provided, however, that if such Parties are unable to agree on the identity of the arbitrator within 10 Business Days of commencement
of efforts to do so, each Party who is a party to the Dispute shall select one arbitrator and the arbitrators so selected shall
select a final arbitrator, and the final arbitrator shall conduct the arbitration alone. The Parties agree that, in connection
with any such arbitration proceeding, each shall submit or file any claim which would constitute a compulsory counterclaim (as
defined by Rule 13 of the Federal Rules of Civil Procedures) within the same proceeding as the claim to which it relates. Any
such claim which is not submitted or filed in such proceeding shall be barred. The arbitrator shall be instructed to use every
reasonable effort to perform its services within seven days of request, and, in any case, as soon as practicable.The Parties agree
to be bound by the provisions of any limitation on the period of time by which claims must be brought under Delaware law or any
applicable federal law. The arbitrator(s) shall have the right to award the relief which he or she deems proper, consistent with
the terms of this Agreement, including compensatory damages (with interest on unpaid amounts from due date), injunctive relief,
specific performance, legal damages and costs. The award and decision of the arbitrator(s) shall be conclusive and binding on
all Parties, and judgment upon the award may be entered in any court of competent jurisdiction. Any right to contest the validity
or enforceability of this award shall be governed exclusively by the United States Arbitration Act. The arbitration shall be conducted
in New York City, New York. The provisions of this Section 6.09 shall continue in full force and effect subsequent to and notwithstanding
the expiration or termination of this Agreement.


 


Section 6.10 Severability. If any provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of
the Transactions is not affected in any manner adverse to any Party. Upon such determination that any provision is invalid,
illegal or incapable of being enforced, the Parties shall


negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in an acceptable manner to the end that the Transactions are fulfilled
to the extent possible.


 






    


     


    

 


Section 6.11 Entire Agreement. The Transaction Documents constitute
the entire agreement between the Parties with respect to the subject matter hereof and thereof and supersede all prior agreements
and understandings, both oral and written, between the Parties with respect to the subject matter hereof and thereof.


 


Section 6.12 Specific Performance. Each Party agrees that irreparable
damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that each Party
shall be entitled to seek specific performance of the terms hereof in addition to any other remedy at law or in equity.


 


Section 6.13 Construction. The table of contents and
headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or
interpretation of this Agreement. In the event of a conflict between language or amounts contained in the body of this
Agreement and language or amounts contained in the Exhibits attached hereto, the language or amounts in the body of the
Agreement shall control. References to Articles or Sections shall refer to those portions of this Agreement. The use of the
terms “hereunder,” “hereof,” “hereto” and words of similar import shall refer to this
Agreement as a whole and not to any particular Article, Section or clause of or Exhibit to this Agreement.


 


Section 6.14 Counterparts. This Agreement may be executed
in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood that each Party
need not sign the same counterpart. A facsimile copy or electronic transmission of a signature page shall be deemed to be an
original signature page.


 


[Signature page follows]


 


IN WITNESS WHEREOF, the Parties have caused this Agreement to
be duly executed as


of the Closing Date.


 


Electromedical Technologies, Inc.


 


 


By: Matthew Wolfson


Name: Matthew Wolfson


Title: Chief Executive Officer


 


 


JR-HD Enterprises III, LLC


 


By: Jeff Ramson


Name: Jeff Ramson


Title: Manager


 


Exhibit A


Convertible Promissory Note


 


(Attached)